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April 10 2014 5 10 /04 /April /2014 11:29

 

The severity with which Apple is brutal judges . Analysts , press, blogs and users exaggerate their successes and minimize their failures. And so it is not unfair. Apple has earned when he did well and should hold it when you are wrongly made . You do not get on a pedestal only to be told nice . Suddenly, you're calling the attention of millions of people and can not get along well with them all . Intending to is wasted effort .

Last week we talked about how Apple does not aspire to be a universal or for all public company. Unlike Google , which aims to put a screen in front of everyone for advertising ( doing business a posteriori) , Apple's business is to sell a product, and you earn money with each sale from the beginning ( doing business a priori) . Understand that Apple can neither wants to serve everyone is vital to understand how it works , and business strategy .

Apple sells hardware and software with attractive services to enhance their value. Pretender to change their way of making money by replacing sales margins from services à la Google is like asking a water source to give us orange . You have to change everything behind the fountain to get the desired result and I do not see Apple with intention.

That said, today we will see what it was designed for the iPhone 5c(cheap iphone 5 case), whether you have met your goal or failed and how their sales are compared to the other phones in the market.

Who are you, iPhone 5c ?

 

5c The iPhone has not been , is not, nor will it be cheaper iPhone that many wanted. A low cost iPhone that broke the market. As much as we wished , Apple never said it out to be and it made ​​clear the day of the presentation. They were very concerned by some of the leaders of Apple in the growing market for smartphones was concentrating on devices that do not offer them .

With the passage of time and have gathered a few pieces here and there about Apple, its limitations, its preference for high margins and seeing the end product iPhone 5c , these are my reasons why the Cupertino company took this model ( in order of importance , highest to lowest ) :

  1. Relieve the pressure of selling top of the range iPhone, 5s. The iPhone is Apple's cash cow and he always says, proud that they can not make enough iPhones for launch.More on that later.
  2. Attract different customers you already have . An iPhone was new colors never seen in the Apple terminal, but not in other brands like Nokia.
  3. Diversify the range of iPhone in a maturing market. The original iPod was large and had plenty of capacity. When Apple released the Mini and then the Nano, technology enthusiasts predicted its failure under the mantra "less capacity, insultingly high price."It was clear that Apple was going to other different customers.
  4. Strengthening the Apple ecosystem with clients who are good from their point of view and for her (again, does not make them better people or customers of other manufacturers are bad) clients who invested in the device, apps, movies, books, series and accessories.
  5. Remove the headache that would be simultaneous production of two models of iPhone aluminum. Apple is not perfect and it has problems with the iPhone 5 and the famous metal scratches on the outside and edge. Imagine walking with 2 different but equal externally models.
  6. Create a substitute for iPhone 5 to be different, with character and out to match iOS 7. hardware and software to hand, the symmetry and duality that is so loving Apple.Well, that and make it clear that Jony Ive handled the roost, is the result of Apple's chief designer won an internal war against Forstall ?

These are my 6 aspects that give the reason for its existence and the iPhone 5c. Sell ​​a low cost iPhone may be in the plans of some managers and showed so internally , but the final decision was that Apple does low cost simply by being cheaper than the competition.

Evaluating failure iPhone 5c

 

The truth is rarely pure and never simple - Oscar Wilde.

This is getting interesting . Is iPhone 5c really a failure? If I had to answer this question with a yes or no , I should say Yes, but as Oscar Wilde said, there are shades of gray between black and white and in this case is full of colors . iPhone 5c , of course.

To find out, we must evaluate the iPhone 5c according to the 6 goals scored and Apple we have seen above. There was a low cost iPhone nor never will be , so let's leave that aside because that was never the intention to end Apple :

  1. RELIEF iPhone 5s pressure and helped sell more models? No. At the shareholders meeting last January, Cook admitted they were wrong to anticipate demand and the mix of iPhone 5s / 5c had prepared was wrong. This resulted in more iPhones 5s 5c, so that not only relieved the pressure but was stopped selling many of the top model. You may even exacerbate the problem by telling the consumer "Hey, look, for $ 100 more you have the top model". Whichever way you look at it, the ruptured stock is always bad because you have clients willing to buy your phone but can not satisfy your desire.
  2. Attracted new? Different customers? Yes According to Dominic Sunnebo Kantar Worldpanel ComTech of "half a 5c owners come from other brands, compared with 80% of users of a previous iPhone 5s in the case."
  3. Has diversified range? Yes For the first time, Apple has released two new models in the same year. The iPhone 5c replaces the iPhone 5 in both price and features, yes, a year earlier.
  4. Has reinforced the ecosystem? Yes Apple does not look at the overall market share but on the high end, which has a large extent . What would you like to have all the high-end customers of Samsung, LG, Nokia and company? Definitely. Apparently and according to item 2, Apple has strengthened its ecosystem itself.
  5. Have you simplified your production? Yes, with a unique aluminum model seems Apple is telling us that it is not able to do two simultaneously.
  6. Will iOS Hand 7? Yes, it's clear the influence of Jony Ive on Apple in both the hardware and the software now. Like more or less, but it is clear that belong together and are always designed together .

For me, the iPhone 5c is a failure from the time point 1 has not only met but has worsened . The remaining points partially mitigate the impact of not being able to serve each and every one of the iPhones that demanded the audience. They could have sold more units. From the financial point of view have not achieved the expected results but strategically other objectives are met . However, failure often has been, let's see in the next section .

A blunder billions

 

A few weeks ago , in Appleinsider comparing the estimated iPhone sales 5c with the rest of the competition. The picture painted by the comparison is as follows:

 

Breaking down the figures we have in the fourth quarter of 2013 , when the 5s and 5c were launched , sales were ( are estimates , according to the article, and keep in mind that Apple never broken by models like other manufacturers) :

  • iPhone 5s: 31,8 millones.
  • iPhone 5c: 12,8 millones.
  • iPhone 4s: 6,4 millones.
  • Samsung Galaxy S4: 9 million, nearing its renewal.
  • LG G2: 2,3 millones.
  • IPhones Total: 51 million among all models.
  • Blackberry Total: 6 million among all models.
  • Nokia Total: 8.2 million among all models, keep in mind that controls 90% share of Windows Phone.

I do not know about you, but the iPhone 5c(best iphone 5c cases) has outsold the flagships of Samsung and LG together or more than all Blackberry models or more than all Nokia models makes me rethink the terms of the failure of Apple. Even if you came to sell half of what he says 5c this estimate will still be a phone that any manufacturer would want to have in their catalog.

Who would not want to fail at the same level as the iPhone 5c ?

Are They put paw to estimate the sales mix ? Yeah Corrected their error when they realized ? Rumor has it changed the mix as they could. Did they do something about it to fix it? Remove an iPhone 5c lower capacity , ultimately have sold 6.4 million iPhones 4s with 8GB of capacity. It seems that some people do not need more capacity and are happy as well .

Back to the beginning when he said that Apple was measured with a double standard and is also true in this case. But it's something you have been searched , for better and for worse. Apple fails , of course , but what matters is the attitude towards failure . When you try to fix messes up the error as soon as possible and not expected to solve the problems by themselves. And that you also have to hand it to Apple.

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